Critical Comparison: Otelco (OTT) vs. Fusion Telecommunications Int'l (FSNN)
Otelco (NASDAQ: OTT) and Fusion Telecommunications Int'l (NASDAQ:FSNN) are both small-cap telecommunications services companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.
Insider & Institutional Ownership
23.1% of Fusion Telecommunications Int'l shares are owned by institutional investors. 19.1% of Fusion Telecommunications Int'l shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Otelco and Fusion Telecommunications Int'l’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fusion Telecommunications Int'l||$122.04 million||0.69||-$12.71 million||($0.81)||-4.68|
Otelco has higher earnings, but lower revenue than Fusion Telecommunications Int'l. Fusion Telecommunications Int'l is trading at a lower price-to-earnings ratio than Otelco, indicating that it is currently the more affordable of the two stocks.
This table compares Otelco and Fusion Telecommunications Int'l’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fusion Telecommunications Int'l||-10.36%||-276.63%||-11.17%|
This is a breakdown of current ratings and recommmendations for Otelco and Fusion Telecommunications Int'l, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fusion Telecommunications Int'l||0||0||2||0||3.00|
Fusion Telecommunications Int'l has a consensus target price of $4.00, indicating a potential upside of 5.54%. Given Fusion Telecommunications Int'l’s higher probable upside, analysts clearly believe Fusion Telecommunications Int'l is more favorable than Otelco.
Volatility & Risk
Otelco has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Fusion Telecommunications Int'l has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500.
Fusion Telecommunications Int'l beats Otelco on 7 of the 10 factors compared between the two stocks.
Otelco Inc. provides a range of telecommunications services on a retail and wholesale basis. These services include local and long distance calling; network access to and from its customers; data transport; digital high-speed and dial-up Internet access; cable, satellite and Internet protocol television; wireless, and other telephone related services. The principal markets for these services are residential and business customers residing in and adjacent to the exchanges the Company serves in Alabama, Massachusetts, Maine, Missouri, Vermont and West Virginia. In addition, the Company serves business customers throughout Maine and New Hampshire and provides dial-up Internet service throughout the states of Maine and Missouri. In January 2014, the Company acquired Reliable Networks, a provider of cloud hosting and managed services for companies who rely on mission-critical applications.
About Fusion Telecommunications Int'l
Fusion Telecommunications International, Inc. is a United States-based provider of integrated cloud solutions, including cloud voice, cloud connectivity, cloud infrastructure, cloud computing, and managed cloud-based applications to businesses, and voice over Internet Protocol (VoIP)-based voice services to carriers. The Company operates through two segments: Business Services and Carrier Services. Through Business Services segment, it provides cloud voice, cloud connectivity, cloud infrastructure, cloud computing and managed cloud-based applications to businesses of all sizes. Its suite of business services includes unified communications as a service, session initiation protocol trunking solution and file sharing solution. The Carrier Services segment includes termination of domestic and international carrier traffic utilizing VoIP technology. It offers solutions to small, medium and large businesses. It offers domestic and international VoIP services to carriers around the world.
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